NURS-FPX6008 Assessment 1 Proposing a New Initiative Example

Economics and Decision Making in Health Care-Proposing a New Initiative

Disciplines interrelate in complex manners to support each other and make living conditions better for human beings. Economics in healthcare transforms services to ensure economic gains while maintaining the health of populations in ethically acceptable ways. There are many opportunities for providing new services, and their analysis provides a better understanding to increase success chances. Economic concepts come in handy when determining the profitability of a business and the possibility of the success of an idea. This essay explores a business opportunity based on economic data and expected benefits in healthcare and proposes a new service lie supported by economic data.

D030 Service Plan Brief for Psychiatric/ Mental Health Service Line

Overweight and Obesity Management Service Line

The proposed service line is the obesity and overweight management service line. The line is a hybrid invention that will transverses healthcare and physical fitness to provide high-quality services. The services will be offered online and physical- both are paid programs to cater to the population’s needs. The new service line will operate in a gym set up where trainers will train them in exercises to lose weight and educate them on dieting interventions. Most patients will be referred to the hospital to help reduce weight for various health reasons.

The program will be a source of income for the hospital through the payment of services it will offer to the individuals. The services include personal trainers, using gym equipment, and registration fees. According to Tyagi et al. (2019), businesses compensate for revenue lost from other areas with revenue earned from areas that are doing well. The amount received from these contributions will enable the service line to provide services to its clients.

The remaining amount will be channelled to other areas in the organization that require funding. The new service line will also provide employment opportunities for professionals such as secretaries, therapists, and trainers. The new service line will also employ other professionals and businesses in outfits and security industries. The new service line is thus a source of funds for the community and the institution.

Obesity and overweight are the precursors for various health conditions such as diabetes, prediabetes, hypertension and heart disease. Mora-Gonzalez et al. (2019) show that physical activity and other lifestyle modifications are effective interventions in managing overweight and obesity. The new service line will reduce the risk of overweight and obesity and promote better patient outcomes. The program will also be useful for patients with diabetes, prediabetes, and heart disease who desire to maintain physical activity for better outcomes (Thompson et al., 2020).

The service line will serve individuals from all races and ethnic groups. It will work in collaboration with the healthcare institution, and the hospital will refer patients in need of activity training to the institution. It will provide care continuity for these patients. In addition, its doors will be open to external clients who wish to reduce their weight in the gym. The new service line will thus provide ethical and culturally equitable quality care for the community.

Economic Factors of Supply and Demand

Demand is the will and ability of customers to purchase a good or service, while supply is the satisfactory access to the good or service. The demand and supply of physical fitness services depend on many factors. The US fitness industry is worth over $75 billion and has revolutionized to include online class streaming and a shift towards healthier lives. The increasing demand for fitness services is expected to increase the industry’s value by over 175% to over $400 billion (Kolmar, 2022).

The demand for personalized training has increased due to the coronavirus. Individuals are opting for healthier lives through lifestyle modification. There are about 41700 fitness training centers in the US, and more than half offer online exercises (Kolmar, 2022). These statistics show that there is a gym for every 8,000 US citizens. The fitness centers vary in size but have an average capacity of 200 individuals. Physical fitness training is important.

The government and non-governmental organizations have teamed up to promote healthier populations, especially after COVID-19. There have been widespread health education programs pointing out the need for eating healthier foods and exercising. Many have also opted for physical fitness after seeing the effects of overweight and obesity and the associated diseases such as diabetes and heart disease on COVID-19 (Thompson et al., 2022). Kercher et al. (2022) note that the fear and the desire to maintain a healthy weight for maximum protection has driven the industry to increase its market and has produced exponential growth, making it one of the fastest-growing industries.

The US healthcare system is battling the problem of overweight and obesity. The CDC reports that about two-thirds of the US population is overweight or obese (41.9%), and more than 70% do not meet the minimum physical activity requirements (CDC, 2022). Most community centers are expensive and focus on bodybuilding and resistance training, and less focus is put on weight reduction. However, about 39% of US citizens have a gym membership, and the industry grows by about 8.7% per year (Kolmar, 2022). Few healthcare organizations, such as this proposed new service line, provide integrated education and follow-up.

The availability of data is important for the plan’s success projection. Creating a fitness center would require gathering and considering the perspectives of the community around the hospital. There is a need for more information on the types of services offered in the various fitness centres because these services vary greatly. In addition, it is crucial to consider the individuals using simulations and online classes to help have a better idea of how the market is.

Relevant Economic and Environmental Data Support

The data presented shows an opportunity to provide an integrated healthcare fitness program for patients and the population. There are many fitness centres in the nation, but the number they are not enough to manage the fitness needs of the entire population. Every human needs physical fitness, not just the sick, overweight, or obese (Thompson et al., 2022).

The data also shows that many individuals in the community with fitness needs do not seek services (demand is low), hence the need for marketing in the neighborhood. The high number of obese and overweight patients is relatively high and highly unmet. In addition, the existing service providers are also few and do not meet the exclusive patient and population needs. Thus, the new service lie is viable because of the available market gap.


Obesity and overweight pose serious problems to the US healthcare system owing to their huge risks for diseases such as cancer, diabetes, and heart disease. Thus, physical fitness is an area of interest that can provide care continuity for those clients wishing to continue with their non-pharmacologic interventions for various illnesses such as diabetes. The US health fitness industry has been growing steadily, and the business is growing exponentially post-COVID period. Adopting online learning classes has increased the efficiency and growth of the industry. Opening the new service line will benefit the organization and the community through revenue collected and job opportunities created. Considering this new service line is thus paramount.

NURS-FPX6008 Assessment 1 Proposing a New Initiative References

  • Center for Disease Control and Prevention (CDC), (2022). Overweight & Obesity. Data & Statistics.
  • Kercher, V. M., Kercher, K., Bennion, T., Levy, P., Alexander, C., Amaral, P. C., & Romero-Caballero, A. (2022). 2022 Fitness Trends from Around the Globe. ACSM’s Health & Fitness Journal, 26(1), 21–37.
  • Kolmar, C., (2022). 22 Fitness Industry Statistics [2022]: Trends, Growth, And Market.
  • Mora-Gonzalez, J., Esteban-Cornejo, I., Cadenas-Sanchez, C., Migueles, J. H., Molina-Garcia, P., Rodriguez-Ayllon, M., Henriksson, P., Pontifex, M. B., Catena, A., Ortega, F. B., & Ortega, F. B. (2019). Physical fitness, physical activity, and the executive function in children with overweight and obesity. The Journal of Paediatrics, 208, 50-56.
  • Thompson, W. R., Sallis, R., Joy, E., Jaworski, C. A., Stuhr, R. M., & Trilk, J. L. (2020). Exercise is medicine. American Journal of Lifestyle Medicine, 14(5), 511–523.
  • Tyagi, M., Sharma, R., Gupta, P., Sinha, V., & Tyagi, N. (2019). TQM: A Philosophy of Business Expansion by Increasing Productivity. International Journal of Research in Engineering, IT and Social Sciences.

NURS-FPX6008 Assessment 1 Proposing a New Initiative Instructions and Example



NURS-FPX6008 Assessment 1 Proposing a New Initiative – Developing an Implementation Plan

Preparing to implement a business is an activity that requires intensive consideration. There are various lessons from other healthcare institutions and top-performing companies. Finances are the most limiting resources in any healthcare institution, and a budget is integral to help avail and control funds. A business may be affected by environmental forces threatening its existence and viability; hence, there is a need to understand the nature of a company and the possible risks to help mitigate them. This essay prepares an extensive budget and an implementation plan, evaluates the plan’s effects on the organization, and evaluates strategies to assist the business to remain viable and relevant in the future.

Expected Costs and Earnings from the Proposed Initiative

The budget for the business idea has varied and includes essential items from the insights gained in the last assessment. The staff needed include one manager ($50 000) and two supervisors ($45000), a receptionist ($35000), 15 trainers ($630000), and two janitors ($32000). The team responsible for implementing the plan will also be paid ($300,000) for the first year during its planning and implementation before handing it over to the manager as a complete project. The manager and the two supervisors will receive a salary and thus not be included in these payments. The staff costs in five years will be about $4,817,000 for five years after multiplying the staff needs by five years and considering the current 4% annual salary growth rate (Miller, 2021).

Materials required include exercise equipment (treadmills, bars, and dumbbells), tanks, computers, music systems, and tanks. Building requirements include a story building, modern ventilation/air conditioning systems, and parking space ($3milliom) (details in the appendix). Legal provisions include an employer, a business license ($750), and insurance ($36 000). Utilities required have (constant water supply and electricity). The recurrent costs over the next five years are utilities. These costs are relatively high but will enhance the center’s success without compromising its functionality for client comfort. Water, electricity, and other utility costs are estimated at $60,000 for the five years considering the current 9.1% inflation rate (Jordà et al., 2022).

The proposed business idea is expected to grow exponentially with time. No profit is expected in the first year because the members will take time to register new members. The business targets 1000 members within the first year and expected capacity within the second. It also targets 5000 online members within the first year, 8000 within the second year, and the predicted capacity at the beginning of the third year. Profits expected in the first year will thus be $2,300,000, second year; $4,800,00, third: $5,400,000, fourth: $5,400,000, and fifth $5400000. These numbers are rough estimates. The gym can also accommodate more individuals in both online and physical classes. The business will take some time to register members to meet the expected capacity. It will also take time for the online classes to gain members and can take up to three years to reach the expected capacity.

The proposed initiative will source its capital for the first five years from healthcare institutions, grants from the government, and the remaining portion, if any, from commercial institutions. The amounts collected will cater to some gym costs, and the institution will supply the rest. The profits realized are expected to rise in the second year and increase exponentially in the fifth year due to increased gym members and clients from partnering hospitals.

This budget takes care of feedback and insights gained from the previous assessments. It considers all business requirements, including staff and material, and costs over five years. The business takes care of uncertainties by ensuring it ensures itself with a credible institution to cushion against any losses that could occur. There are also various considerations for the business, such as special building features. Zhdanova et al. (2020) note that a fitness center will require more humidity, air pressure regulation, and water supply than any other building due to heavy breathing and sweating. Water and air conditioning requirements are high.

Electricity requirements are also high for a gym building. The items and walls should also be indestructible by high humidity, and cleaning requirements are also relatively higher. These considerations will increase the comfort in the gyms and the retention of customers because comfort and hygiene are major determinants of gym utilization (Zhdanova et al., 2020). These considerations have shaped the budgeting for the initial and recurrent costs

One assumption is that the hospital will offer the land for the new business idea and that the initially planned capacity will be created. In addition, the prices of the materials and payments will not rise exponentially before the implementation, owing to the currently high inflation rate. Another assumption is that the business will be implemented between 2022-2027 because the calculations are based on available prices as of this period.

Ethical and Culturally Equitable Implementation Plan

The business idea will commence implementation three months from now, with adequate preparation and evaluation for better planning and execution. The following six months will entail the construction of the building and equipment installation. Four months into the building construction, marketing will occur to perch clients before its beginning. The business line will begin operation a month from now. The primary stakeholders are the lending institution, the healthcare organization, patients, and private and public hospitals. The most important consideration is to promote accountability during the activity. Contacting and explaining the role requirements and collecting stakeholder feedback is vital as they minimize conflict and promote cohesion.

Discussing with the stakeholders and developing mutual goals and objectives will help ensure collaboration and drive effort toward achieving these goals. Creating roles and responsibilities for each team and communicating promptly will ensure that the team works together and that the idea is executed ethically and equitably. Giving each member a role to play will ensure that the business line does not affect any stakeholder negatively. Patient involvement will bring the perspectives of the recipients. A team of directors will be responsible for implementing the project. These will be appointed responsible for the various activities to ensure accountability and responsibility. These interventions will ensure that the proposed interventions are implemented ethically and culturally equitably.

Various interventions will help achieve the desired outcomes. The first step for any business is developing a process map. A process map shows all activities and their associated aspects, such as costs. Developing the process will help evaluate processes and activities and determine if they have been achieved and if all the conditions agreed upon in their creation were met. Monthly briefings and advanced reporting are also integral to ensuring that activities are on track. These reports and meeting briefs inform the directors of the progress based on the process map. They also help absorb any disruptive innovation to promote better outcomes.

In addition, managers strive to achieve better results because they are supervised. These interventions ensure that all activities are implemented as per the rollout. Periodic post-implementation surveys will help evaluate the program after the implementation and dissolution of the management board. These interventions will ensure that activities in the rollout are implemented as planned.

Effects of the Proposed Initiative on the Other Aspects of the Care Organization

The proposed intervention will have various effects on the organization. One of the most affected aspects is the financial aspect which will be affected, and the availability of money for other departments will also be limited. The quality assurance, finance, and physiotherapy departments will be significantly affected. The development of the hospital may be stalled, affecting it negatively. In addition, the quality assurance and finance departments will suffer an increased workload. Despite the fitness center being independent, its implementation will depend highly on the healthcare organization’s staff.

The physiotherapy department will also likely shift offices to the fitness center. The hospital operates a small physiotherapy department, which will expand, increasing the need for more staff while serving an even larger population. Manurung and Anggiat (2021) note that a fitness center in a healthcare organization is a service line in the physiotherapy department and exponentially increases the population the hospital serves in the department. The departments highly limit the number of individuals receiving their services to those with severe immobility, affecting their quality of life. This department will increase its service offerings and the number of patients it offers its services to. The availability of professional trainers in the fitness center will limit the need for more professionals in the department. Thus, it will retain the operations but increase the number of patients it will offer its services.

Proper financial planning will help reduce the effects. The institution will not finance the whole project to prevent the unavailability of funds for other development interventions. Funds from lending institutions and possible grants will ensure the success of these interventions. In addition, hiring an external team to help with financial management and planning will ensure that the hospital staff is not burdened and that their productivity is not negatively affected. Hiring these staff before other staff will ensure the proper running of the project because not all directors and stakeholders have enough knowledge in financial planning and quality assurance critical at the beginning of the project. According to Wiraeus and Creelman (2019), many institutions and businesses fail due to poor financial planning. Hence, there is a need for these professionals at the beginning of the project. They will thus be the first professionals to involve.

Strategies for Ensuring Viability and Relevance of the Initiative Amidst Environmental Changes

The fitness industry is dynamic, with new machines being developed yearly. León-Quismondo et al. (2020) state that there is a considerable risk of machines becoming obsolete and irrelevant, negatively affecting the fitness center. In addition, professionals are constantly developing and adopting new methods, such as specific exercises. Organizations must learn and implement these exercises and discoveries to remain relevant. In addition, policies affecting gym operations can be somewhat unpredictable. Lendacki et al. (2021) show that COVID-19 stalled fitness centers’ performance, and the distortion has affected their operation, and have not recovered. Government policies can limit fitness centers’ operations due to diseases or other risks, and cushioning the business against these environmental risks is essential.

Diversifying services and operations have been the mainstay of maintaining business relevance (León-Quismondo et al., 2020). Adapting to these environmental changes affects a business’s ability to remain viable. Large conglomerates such as Tata and companies such as Apple and Tesla have adopted to changing environments but continuously producing improved products over time with new features keeping their products relevant and viable. Like many organizations after the COVID-19 period policies, the institution can increase its online capacity to absorb any limitations that affect the business’s physical operation in the future (Almasri et al., 2021). Increasing the fine centers’ digital resources is an effective way of raising revenue and improving their ability to absorb environmental shock. Anderson et al. (2022) show that the negative attitude towards physical fitness centers and policies affecting their operations can thus be mitigated by diversifying/investing in digital resources.

Borrowing from other institutions through benchmarking is an important step that improves perspectives and enhances the success of interventions because there are lessons available to learn from other institutions. Bastas and Liyanage (2019) state that companies constantly review their products to improve them and incorporate vital feedback from the stakeholders, especially the users. The institution will conduct period post-implementation evaluations to help determine the effectiveness of interventions and help plan improvements. The periodic evaluations will also incorporate current best practices, such as new and advanced equipment, to ensure the fitness center remains relevant and viable in the future (Bastas & Liyanage, 2019). These strategies will ensure that the proposed innovation will remain viable and a reliable source of funds for the organization despite the environmental forces that may affect it.


The new line will provide services primarily to obese and overweight patients but will give equal chances to the whole population. The business will have high initial costs, but the project’s key drivers are membership fees for online and physical classes. Financial planning is integral and helps evaluate a business’s profitability, sustainability, and future viability. Evaluating the five-year budget reveals that the revenues from the business will increase over time as it gains familiarity. The business is subject to adverse environmental dynamics, and ensuring diversity, periodic evaluations, and investing in digital resources will help the business remain viable and relevant in the future.

NURS-FPX6008 Assessment 1 Proposing a New Initiative References

Almasri, D., Noor, A., & Diri, R. (2020). Behavioral changes in gym attending due to COVID-19 pandemic: A descriptive survey. Journal of Microscopy and Ultrastructure, 8(4), 165.

Anderson, D. J., Bo, H. H., Zhao, T. T., & Zhang, J. J. (2022). The Digital Fitness Industry in the United States. In The Digital Transformation of the Fitness Sector: A Global Perspective (pp. 67–72). Emerald Publishing Limited.

Bastas, A., & Liyanage, K. (2019). Setting a framework for organizational sustainable development. Sustainable Production and Consumption, 20, 207-229.

Jordà, Ò., Liu, C., Nechio, F., & Rivera-Reyes, F. (2022). Why Is US Inflation Higher than in Other Countries? FRBSF Economic Letter, 7.

Lendacki, F. R., Teran, R. A., Gretsch, S., Fricchione, M. J., & Kerins, J. L. (2021). COVID-19 outbreak among attendees of an exercise facility—Chicago, Illinois, August–September 2020. Morbidity and Mortality Weekly Report, 70(9), 321.

León-Quismondo, J., García-Unanue, J., & Burillo, P. (2020). Best practices for fitness center business sustainability: A qualitative vision. Sustainability, 12(12), 5067.

Manurung, N. S. A., & Anggiat, L. (2021). Entrepreneurship Models In Physiotherapy Practice: An Observational Study. International Journal of Medical and Exercise Science, 7(3).

Miller, S., (2021). Revised 2022 Salary Increase Budgets Head Toward 4%. Society for Human Resource Management. 

Wiraeus, D., & Creelman, J. (2019). Aligning the financial and operational drivers of strategic success. In Agile Strategy Management in the Digital Age (pp. 129-149). Palgrave Macmillan, Cham.

Zhdanova, I. V., Kayasova, D. S., Kuznetsova, A. A., & Kalinkina, N. A. (2020, March). Basics of architectural typology of modern fitness centers. In IOP Conference Series: Materials Science and Engineering (Vol. 775, No. 1, p. 012063). IOP Publishing.

Also Read: NURS-FPX6008 Assessment 2 Developing a Business Case